Kiev, Romania Plans Debt: Emerging-Markets Bond Alert

By Piotr Skolimowski -
May 24, 2011

The following borrowers in emerging
markets are expected to sell international debt. New information
is followed by previously reported plans.

KIEV will sell $300 million of Eurobonds next month to
refinance existing debt, Interfax-Ukraine reported, citing
Oleksandr Popov, the city’s head of administration. Ukraine’s
capital city will use most of the proceeds to refinance $200
million of Eurobonds the city sold in 2004 at a lower interest
rate, Interfax cited Popov as saying. Kiev is rated B2 at
Moody’s Investors Service and CCC+ at Standard & Poor’s.

ROMANIA’s Finance Minister Gheorghe Ialomitianu said market
conditions are “favorable” to sell euro-denominated bonds
abroad. The Balkan nation hasn’t decided on the timing of a
sale, part of a three-year, 7 billion-euro ($9.9 billion)
medium-term note program, he told reporters in Bucharest.
Romania is rated Baa3 at Moody’s and BB+ at S&P.

AZERBAIJAN may sell its first Eurobonds by the end of this
year, according to Mais Piriyev, a Finance Ministry spokesman.
The country is rated Ba1 at Moody’s Investors Service, BB+ at
Standard & Poor’s and BBB- at Fitch Ratings.

FOSUN INTERNATIONAL plans to sell five-year dollar bonds to
yield around the 7.5 percent to 7.75 percent area, according to
a person familiar with the matter. The company may sell as much
as $300 million of five-year bonds as early as this week, a
person familiar with the matter said on May 3. The Chinese
company with interests in property, retail and steel is rated
Ba2 at Moody’s and BB+ at S&P.

IDBI BANK LTD. (IDBI) plans to raise as much as $300 million
selling Swiss franc-denominated bonds, Chairman R.M. Malla said.
The Indian state-owned lender is rated Ba1 at Moody’s and BBB-at
S&P and Fitch.

INTERNATIONAL CONTAINER TERMINAL SERVICE INC. plans to sell
perpetual dollar bonds priced to yield around 8.5 percent, said
a person familiar with the matter. The Philippine port operator,
known as ICTSI has no ratings from Moody’s, S&P or Fitch,
according to data compiled by Bloomberg.

LONKING HOLDINGS LTD. (3339) hired Credit Suisse Group AG and
Standard Chartered Plc to help it sell five-year dollar bonds.
The maker of wheel loaders in China is rated BB at S&P.

MALAYSIA plans to sell 10-year Islamic bonds in dollars,
four people familiar with the matter said. The Southeast Asian
country is rated A3 at Moody’s and A- at S&P and Fitch.

MIE HOLDINGS CORP plans to sell as much as $400 million of
five-year bonds to yield around the 9.75 percent area, according
to a person familiar with the matter. The company hired Bank of
America Corp., Deutsche Bank AG and UBS AG for a sale of five-
year bonds in dollars. The Beijing-based operator of oilfields
in China is rated B+ at S&P.

PT MEDCO ENERGI INTERNASIONAL may sell $150 million of
bonds in the second half of this year to fund capital
expenditures, including investments in Libya, Hilmi Panigoro,
president commissioner at the Indonesian oil producer, said in
Jakarta. The company is rated B with a negative outlook at S&P.

RHB CAPITAL BHD. (RHBC)’s plan to sell as much as $500 million in
multi-currency notes was approved by the country’s Securities
Commission. The Malaysian lender has no ratings from Moody’s,
S&P or Fitch, according to data compiled by Bloomberg. RHB’s
Bank BHD unit is rated A3 by Moody’s and BBB+ by S&P.

CZECH RAILWAYS AS said it hired Barclays Capital Plc, Erste
Group Bank AG and Societe Generale SA to manage an international
bond offering. The state-run passenger carrier, locally known as
Ceske Drahy AS, has received a provisional long-term rating of
Baa1 with negative outlook from Moody’s.

POLAND may offer “benchmark” bonds in dollars or euros
and sell debt in a private offering to cover some of next year’s
borrowing needs, Deputy Finance Minister Dominik Radziwill said.
The country is rated A2 at Moody’s and A- at S&P and Fitch.

SERBIA plans to sell as much as 700 million euros in bonds,
Prime Minister Mirko Cvetkovic said. About 20 percent of the
securities will be in dinar, with the rest in foreign currency.
The Balkan country is rated BB at S&P and BB- at Fitch.

MIDDLE EAST & AFRICA

BHARTI AIRTEL LTD. (BHARTI) plans to raise $750 million selling its
first overseas bonds, said Fitch, which has rated the 10-year
bonds from India’s biggest mobile-phone operator BBB-.

EGYPT plans to raise $1 billion by selling five-year
Eurobonds this year, backed by a U.S. “sovereign guarantee,”
Finance Minister Samir Radwan said. The Middle Eastern country
is rated Ba3 at Moody’s and BB at S&P and Fitch.

EMIRATES hired Deutsche Bank AG, Emirates NBD, HSBC
Holdings Plc and Morgan Stanley for a sale of dollar bonds, said
three people familiar with the transaction. The world’s biggest
airline by international traffic has no ratings from Moody’s,
S&P or Fitch, according to data compiled by Bloomberg.

EMIRATES NBD PJSC (EMIRATES)’s new 2018 notes in dollars will have a
margin of 1.5 percent over Libor, according to a banker involved
in the transaction. The United Arab Emirates’ biggest bank by
assets hired HSBC Holdings Plc, UBS Investment Bank and Emirates
NBD Capital Ltd. for a sale of seven-year dollar bonds to
replace two outstanding debt issues which mature in 2016, said
two bankers involved in the transaction. The bank is rated A3 at
Moody’s and A+ at Fitch.

FIRSTRAND LTD. (FSR) is considering selling bonds in euros,
dollars or pounds, said company Treasurer Andries du Toit. South
Africa’s second-biggest lender plans to meet investors starting
May 9 in London, said a banker involved in the arrangements.
JPMorgan Chase & Co., Mitsubishi UFJ Securities International,
Standard Chartered Bank and UBS AG are arranging the meetings,
the banker said. The bank is rated BBB at S&P.

CENTRAIS ELETRICAS DO PARA SA may sell bonds abroad after
meetings with investors in Europe, Asia and the U.S., said a
person familiar with the matter. The Brazilian power distributor
known as CELPA is rated B3 at Moody’s and B at Fitch.

CHILE is monitoring market conditions for a possible $1.5
billion sale of bonds in U.S. dollars and pesos, according to
Finance Minister Felipe Larrain. The Latin American country is
rated Aa3 at Moody’s and A+ at S&P and Fitch.

MARFRIG ALIMENTOS SA (MRFG3) plans a benchmark offering of seven-
year notes as soon as tomorrow, said a person familiar with the
matter. The Brazilian beef producer is rated B1 at Moody’s and
B+ at S&P and Fitch Ratings.

PETROLEOS MEXICANOS hired BNP Paribas SA and Deutsche Bank
AG for meetings with bond investors in Europe from May 9 to May
11, said a person familiar with the matter. The largest oil
producer in Latin America, known as Pemex, is rated Baa1 at
Moody’s and BBB at S&P and Fitch.

TV AZTECA SAB plans to sell $250 million of seven-year
dollar bonds abroad after meetings with investors through May 17
arranged by BCP Securities and Jefferies Group Inc., a person
familiar with the transaction said. Mexico’s second-largest
broadcaster is rated B1 at Moody’s and BB- at Fitch.

URUGUAY revised its price guidance for a 40 billion yen
($490 million) sale of 10-year Samurai bonds guaranteed by the
Japan Bank for International Cooperation, according to a person
with direct knowledge of the transaction. The South American
nation is offering the notes to investors to yield between 42
basis points and 46 basis points more than the yen swap rate,
said the person. The country is rated Ba1 at Moody’s, BB+ at S&P
and BB at Fitch.